Relating to the prevention, detection, and investigation of fraud, waste, and abuse in programs administered by the Texas Workforce Commission or by the commission's contractors or grantees.

HB 3700 requires the Texas Workforce Commission (TWC) to establish procedures, detection systems, and reporting mechanisms to prevent, detect, and investigate fraud, waste, and abuse in programs it administers, contracts out, or funds through grants. The bill mandates the TWC to create a public website for reporting and allow anonymous reports from employees, and to submit an annual report to the legislature by September 1 each year detailing received reports, investigation findings, and actions taken. It also prohibits the TWC from retaliating against employees who report in good faith. The law takes effect September 1, 2025, with the first report due September 1, 2026.